How the Fee-Only Advisor Rule Shuts Out Low-Income Families

Lucas and Luna unpack how a 1975 SEC rule requiring financial advisors to charge fees, not commissions, has unintentionally locked out most low-income and middle-class families from professional advice. They trace the rule's origin, its effect on the rise of the fee-only model, and the cost barrier: advisors typically require $250,000 minimum assets or charge $250 per hour. The episode explores how this rule, designed to protect clients from conflicted advice, created a tiered system where the wealthy get fiduciary guidance and everyone else gets sales pitches. They discuss the rise of robo-advisors as a partial solution, the SEC's 2022 proposed amendments, and the growing call for a 'fiduciary for all' standard. A concrete look at how a well-intentioned regulation widened the financial advice gap. #FeeOnlyAdvisor #FinancialAdviceGap #SECRule #FiduciaryStandard #WealthInequality #InvestmentFees #RoboAdvisor #FinancialLiteracy #LowIncomeFamilies #MiddleClass #CommissionVsFee #FinancialPlanning #DOLRule #RetirementSavings #CostOfAdvice #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo